US House's foreign repair station provision remains divisive US Congressional staff expressed optimism Friday that FAA reauthorization legislation can be passed this year but conceded that several contentious issues, in particular regarding FAA inspections of foreign repair stations, remain unresolved. Link
JAL reportedly discussing partnership with Delta, American Anxious for a financial boost in the wake of a ¥99 billion ($1.08 billion) loss in its fiscal first quarter ended June 30 and an increasing debt burden, Japan Airlines launched negotiations with oneworld partner American Airlines and SkyTeam rival Delta Air Lines concerning a potentially significant investment, according to multiple sources. Link
China Southern applying for new government capital injection China Southern Airlines is applying for another capital injection from the government, according to Chairman Si Xianmin. Link
AF KLM reportedly considering cargo restructuring Air France KLM is preparing an in-depth restructuring of its cargo business including a further reduction of its freighter fleet, transfer of all remaining freighters to its Martinair subsidiary and a 20%-30% increase in rates, according to Les Echos. Link
SIA and Air India to cooperate on frequent flyer programmes Singapore Airlines and Air India have signed an agreement to allow members of their frequent flyer programmes to earn and redeem miles on the other carrier. Link
Routes 09: Dubai opens door as foreign anchor base Dubai's airport authorities are open to having a non-home airline as the anchor carrier in the city's new Al-Maktoum International airport. Link
Hong Kong Airport August traffic up 2.8% Hong Kong airport's August passenger traffic grew 2.8% year-on-year to 4.3 million. Link
Jet Airways resumes normal ops, meets pilots' demands India's Jet Airways has resumed normal domestic and international services after the end of a pilot strike that grounded the carrier for five days. Link
Routes 09: Beijing Airport and Singapore's Changi sign MOU Beijing Capital International Airport (BCIA) and Singapore's Changi Airport Group have signed a memorandum of understanding to be 'sister airports', an accord under which they will help each other with staff training and collaborate on projects. Link
Other News
Airline ticket sales through Arlington, Va.-based Airlines Reporting Corp. fell 16.8% in August compared to the year-ago period to $5.16 billion while the volume of total transactions was down 1.7%. Figures represented a very slight sequential decline compared to the performance in July, when transactions were off less than 1% year-over-year and sales decreased 16.7% (ATWOnline, Aug. 14). Total fares, excluding taxes and fees, dropped 17% to $4.38 billion in August compared to August 2008. Domestic fares fell 15.6% to $2.42 billion on a 1.7% decline in transactions and international fares were down 18.6% to $1.96 billion, also on a 1.7% decrease in transactions.
Separately, French airline Aigle Azur joined ARC, becoming the 182nd member. It was brought in by APG-Global Associates through the ARC ASP Coordinator Program developed jointly by ARC and APG USA to facilitate the entry of airlines into ARC.
FedEx Corp. expects earnings for its fiscal first quarter ended Aug. 31 to exceed its previous guidance of $0.30-$0.45 per diluted share. It now expects earnings of $0.58 per diluted share, which would represent a 53% decline from the year-ago quarter. Fiscal second-quarter earnings are expected to be $0.65-$0.95 per diluted share thanks in part to "a continued modest recovery in the global economy," it said. CFO Alan Graf Jr. said the first-quarter numbers were higher than forecast owing to "better-than-expected FedEx International Priority volume, strict cost management and solid execution of our strategy." However, he warned that revenue per shipment declined year-over-year in all transportation segments. The delivery company will announce its earnings on Sept. 17.
Hawaiian Airlines pilots represented by the Air Line Pilots Assn. voted to authorize a strike in case contract talks with the carrier break down and the National Mediation Board declares an impasse. HA and ALPA are scheduled to meet with a mediator on Oct. 12. "There has never been a strike in the 80-year history of our airline, and we don't want one now. But if that's what it takes to win a fair and reasonable contract, our pilots have told us loud and clear that they're ready to take that final step," HA ALPA unit Chairman Eric Sampson said. Pilots voted 98% in favor of authorizing a strike.
LOT Polish Airlines is attempting to cancel the current labor deal with its employees and introduce a new contract on Oct. 1 featuring 15% cuts in employee numbers and salaries, the International Transport Workers' Federation and the European Transport Workers' Federation said. They also claimed the airline fired the president of the Polish Cabin Crew Union and the president of the LOT Polish Airlines Employees Union in July. ITF and ETF said they are putting together "a plan of international action for the next six months" in conjunction with national trade unions.
Aer Lingus confirmed that at least 55 cabin crew working on temporary contracts will be terminated. The Impact union representing the workers said 65 have been notified they will be released, with some leaving at the end of September and the rest departing a month later. It said 56 of the affected workers are based in Dublin and nine in Cork.
Qantas will operate three sightseeing flights over Antarctica during the southern summer with its new A380. It has partnered with Antarctica Sightseeing Flights of Melbourne since 1994 using 747-400s. The first A380 flight is scheduled for Dec. 31 from Melbourne, the second on Jan. 24 from Sydney and the third on Feb. 14 from MEL. The New Year's Eve flight will be under the command of Capt. John Dennis, who has flown more than 40 of QF's 85 747 flights to the ice. Fares start from A$999 ($859) for the 14-hr. flight, which includes two meals. The most frequently used route takes the aircraft over the icecap, the South Magnetic Pole, the French scientific base at Dumont d'Urville and finally the spectacular Trans-Antarctic Range. Approval has been secured for 19 Antarctic flight routes, with final selection based upon weather and viewing opportunities.
Avient, the Zimbabwe-based DC-10 freighter operator, said it has moved its European hub from Vatry to Liege. It said services are uninterrupted by the abrupt move and that it will continue to specialize in Europe-Africa flights.
Wizz Air will increase service from Cluj Napoca to Rome Fiumicino (from four-times-weekly to daily) and Paris Beauvais (from thrice-weekly to four-times-weekly) on Oct. 25.
Air Pacific and Cathay Pacific Airways will codeshare on FJ's twice-weekly Hong Kong-Nadi service scheduled to launch Dec. 3.
WestJet said it expects its third-quarter unit revenue to be down 16%-18% year-over-year. It flew 1.33 billion RPMs in August, down 4.7%, against a 0.4% fall in capacity to 1.57 billion ASMs. Load factor dropped 3.9 points to 84.5%.
Aer Lingus flew 1.72 billion RPKs in August, a 2.3% increase year-over-year. Capacity fell 0.7% to 2.07 billion ASKs, lifting load factor 2.4 points to 83%.
Gol flew 2.03 billion RPKs in August, a 6.9% year-over-year increase, against a 4.2% hike in capacity to 3.43 billion ASKs. Load factor rose 1.4 points to 59%.
Copa Airlines flew 556 million RPMs in August, up 5.2% year-over-year. Capacity rose 11.1% to 730.4 million ASMs and load factor dropped 4.3 points to 76.1%.
Monarch Aircraft Engineering reached agreement with Air Astana to provide C checks on two 767s, plus an engine change, at its London Luton facility.
Jeppesen signed a five-year electronic charting service contract with Royal Air Maroc that it said "will help the airline make the transition from using standard paper navigation charts to adopting tailored, digital information in the cockpit."
CHAMP Cargosystems joined Cargo 2000.
US President Barack Obama announced his intention to nominate Erroll Southers as assistant secretary, Dept. of Homeland Security-Transportation Security Administration. Southers is assistant chief for Los Angeles World Airports' Office of Homeland Security and Intelligence and associate director of the University of Southern California's Center for Risk and Economic Analysis of Terrorism Events.
Lufthansa CFO Stephen Gemkow was named chairman of the supervisory boards at Lufthansa Cargo, Lufthansa Technik, LSG Lufthansa Service Holding and Lufthansa Systems. The company said the move "represents a further organizational step in the redistribution of executive board responsibilities. . .and is intended to create the organizational requirements for the integration of further carriers into the Lufthansa airline group." Previous Chairman Stefan Lauer has taken over responsibility for group airlines outside the Lufthansa Passenger Airlines segment: Swiss International Air Lines, Austrian Airlines, Brussels Airlines, bmi and Germanwings.
US Airways announced the following promotions: MD-Integration and Compliance Kevin Brickner to VP-technical services, MD and Associate General Counsel Paul Jones to VP-legal affairs, MD and Associate General Counsel Howard Kass to VP-legal affairs and Senior VP-People and Communications Elise Eberwein to executive VP-people and communications.
Horizon Air named corporate finance consultant Mark Eliasen VP-finance.
AVIATION QUOTE
As I write, highly civilized human beings are flying overhead, trying to kill me.
If you're interested in a simulation of a flight environment, you would be much better off by buying yourself a surplus flight helmet (preferably one that doesn't fit perfectly), a sun lamp (to get your head nice and toasty), and a pair of Nomex/leather flight gloves (soak 'em with sweat/oil/hydraulic fluid for that crisp but slick feel). Put your monitor a little above coffee table height. Get about 4-5 of those concrete slabs you see at the garden section of your local K-Mart, top'em with the thinnest cheap cushion you can find. (That's your "ejection seat".) Wipe the mask out with denatured alcohol (smells nice), and clamp a rag soaked in JP-4 (kerosene will do) on the end of the oxygen hose, and strap that puppy on 'till it leaves a ring on your face that lasts for hours. (You do this 'cuz when your face is sweaty and you`re pulling Gs, the mask will be on your chin if it isn't on TIGHT.) Turn the sun lamp on and point it at your head. Now you're doing it like the big boys! Optional "realism" techniques: Buy some nylon webbing (the kind you use to repair old-fashioned lawn chairs with). Cut two straps of this and wrap them between your legs TIGHTLY (that's your `chute harness). Play when you've got a BAD hangover. (Rough night at the O Club.) Have your wife/friend/neighbor pester you with questions out of the Owner's Manual (your pretend "Dash One") while you're trying to fly (Check Ride!) Get up and play at 4:00 am (otherwise known as "oh-dark hundred"). Make a cheese sandwich, wrap it in waxed paper. Stick it in a shoe box with a half-pint of milk, a bruised apple, a crushed bag of Fritos, and an onion. Put in the fridge overnight, then take it out, throw out the onion, put the box under the sunlamp while you're flying, and eat when you're hungry. (Box lunch.) With some imagination and very little cash outlay, you can do a hell of a job simulating what it's like to fly. That other shit (side consoles, switches, speakers, etc.) is strictly for show, and doesn't do anything towards giving you that "There I wuz" feeling.
